Friends of the Earth Birmingham Action Briefing Oct 98/Nov 98

Guide to MAI
Multilateral Agreement on Investment

What's this MAI thing all about then?

The MAI is an international investment agreement, negotiated by the OECD (29 industrialised countries) which could have a profound impact on many countries- including the UK. It is a framework for liberalisation and protection of all types of international investment by multinational big business. It would give foreign investors the right to sue governments over any breach of MAI provisions.

The MAI Full Text is available from http://www.oecd.org/daf/cmis/mai/negtext.htm (contact Reception if you would like us to provide you with a copy)

The main provisions of the MAI are :

• Non discrimination / national treatment: foreign investors will be treated 'no less favourably' than domestic investors.
• Right of entry of foreign investors: unless specifically exempted all sectors will be open to foreign ownership and investment.
• Most performance requirements (such as requiring companies to source locally ) will be prohibited.
• Restrictions on the movement of financial capital be prohibited.
• 'Rollback' and 'standstill': MAI signatories agree not to pass any new laws that conflict with MAI ('standstill') and progressively eliminate any existing laws that conflict with MIA. ('roll-back').
• Foreign investors would be able to seek compensation if government actions are deemed 'tantamount to expropriation'.

The MAI will be enforced by an International Tribunal which would allow companies as well as governments to sue governments over MAI breaches.

Countries that sign are locked into the MAI for five years and any decisions related to foreign investment are then binding for a further 15 years.

What are the concerns with MAI?

• The lack of debate on such a far-reaching treaty:
• MAI gives foreign investors legally binding enforceable rights while protection of labour, health, consumer and environmental laws are covered by weak 'voluntary' provisions;
• Environmental agreements such as the Kyoto climate change protocol could conflict with MAI;
• UK central and local government, the Scottish Parliament, the Welsh Assembly and Regional Development Agencies would be restricted from enacting certain policies to encourage local development;
• Developing countries have no rights of negotiation but are likely to come under pressure to sign.

David Dugmore

The MAI coalition Parliamentary Seminar on Multilateral Agreement on Investment.

'Is the MAI a step forward ?'

Wednesday October 21st, 4-5pm,
Grand Committee Room,
House of Commons.

Speakers:

Susan George and representatives from UK local government, political parties, church groups, business groups, women's groups, cultural groups and trade unions.

(Contact Andrew Sumner Tel 01710 737 6215)

PLEASE contact your MP and ask them to attend this meeting.